After a good 2025 vintage, questions are being asked about the strategy to be adapted in equities and bonds. What are we to make of gold after a jump of more than 30% in 2025 after already…63% in 2024 (in dollar terms) and a rise of 325% in 10 years? As an Asian market takes the cake for best performance in 2025, a number of professionals give their views on the various assets and markets. What can we do now that the indices have hit record highs in the first few days of this year?
In 2025, the Dow Jones gained 12.97%, the S&P 500 16.39% and the Nasdaq 20.36%. Investor enthusiasm for artificial intelligence stocks ended up taking Wall Street on another year of gains. But US performances were hampered by the weakness of the dollar. For the Nasdaq, for example, performance falls to around 7% in euros.
Around the world, stock markets will also be performing brilliantly in 2025. The MSCI All-Country World (ACWI) index gained 21.2%, its best performance in six years.
However, by the evening of 8 April, the day after the Trump administration decided to apply tariffs, investors had become more timid and fewer were betting on a positive 2025, when all the world’s indices plunged into the bright red. However, the recovery was impressive and virtually uninterrupted until 31 December.
Finally, in Europe in 2025, the Cac 40 index in Paris will have gained 10.42%, erasing its 2.15% fall in 2024. But it was the southern European stock markets that shone brightest. With Milan (+31.5%) and Madrid (+49.3%) also up. As a result, the Ibex 35 recorded its second-best year ever, after 1993, when the index soared by 54%.
Kospi, the strongest..
But the big winner this year is Asia. The Seoul Kospi, which took full advantage of the artificial intelligence wave, with half its market capitalisation made up of technology stocks, soared by 76%.
At the start of the year, Maryannick Plomion, portfolio manager at AllianzGI, is maintaining a balanced approach and is confident in risky assets.
“Supported by solid earnings and massive investment in artificial intelligence, equities remain our preferred asset class,” says Maryannick Plomion.
“Geographically, we are maintaining our diversification: the United States and Japan are benefiting from robust fundamentals, while exposure to the eurozone has been reduced slightly. Emerging markets remain our strongest conviction, buoyed by sustained growth and more accommodating monetary policies
Utilities, a combination of stability and performance
In terms of sectors, AllianzGI’s portfolio manager prefers utilities: “This sectorcurrently offers a rare combination of stability and yield, with regulated and predictable revenues, attractive dividends, and growing structural demand driven by the need for electrification and the construction of data centres. The energy transition is driving massive investment in renewables and smart grids, while the sector’s valuation remains attractive after underperforming in 2024. In short, utilities are a defensive and strategic component, combining security, yield and exposure to long-term trends
Oddo’s overall growth forecasts remain moderate. The tariffs and trade barriers imposed by the US government, combined with a weak labour market, are likely to lead to a slight slowdown in growth, particularly in the United States. For Europe, ODDO’s specialists believe that the impact of customs duties could be partially offset by Germany’s fiscal stimulus programme.
Disinflation has progressed in Europe and could continue. Economic policy seems more predictable than in the US, where political uncertainty and potentially damaging actions add to the risk.
ODDO believes that exposure to equities of around 57%, with a slider varying between 53% and 59%, is a good way of adapting to these erratic movements.
Oddo has reduced its weighting towards the US markets and is looking favourably on the Nordic European markets. “We have reduced our exposure to US equities – a market where multiples appear stretched to us. At the same time, we strengthened our diversification by taking a position in the Nordic markets, where valuations remain attractive compared with other developed regions, particularly in Europe
In terms of convictions, we are overweight the United Kingdom, the United States and emerging markets, and underweight large and mid-caps in the eurozone.
On the bond front, Maryannick Plomion, portfolio manager at AllianzGI, favours US duration, while adopting a more cautious stance on eurozone debt and UK Gilts as the cycle of falling yields comes to an end. “In credit, we are strengthening our position in US high yield, supported by favourable spreads and solid flows
Oddo is neutral on the European and US core bond markets and underweight the European halve core. In corporate bonds, the preference is to overweight good-quality, short-dated European securities. On the other hand, high yield securities in Europe and the United States are underweighted.
Gold still the most popular choice..
As far as currencies are concerned, ODDO’s specialists are maintaining a cautious long-term approach to the dollar, while reducing their preference for the euro. The preference is for the Japanese yen. Sterling and the Swiss franc are underweight.
Finally, gold remains a strong conviction, driven by demand from central banks and flows into ETFs, according to AllianzGI. Oddo shares this positive view on gold, and remains rather neutral on oil. Christopher Dembik, Strategy Adviser at Pictet AM, also continues to like gold and silver.
According to Pictet AM in its January Monthly Insight, global equities should continue to rise, underpinned by favourable economic conditions in 2026. The Swiss institution believes that emerging market equities should be among the best performers of the year. On the fixed-income and currency markets, government bond yields could rise in 2026, while the US dollar should depreciate further.
Diversification remains this year’s compass… After more than 300 rate cuts worldwide in 2025! However, gold remains one of the favourites and emerging markets are proving attractive.
